Re: Pareto efficiency and Competitive Equilibrium

Posted by Amit Goyal on Feb 14, 2017; 11:53pm
URL: http://discussion-forum.276.s1.nabble.com/Pareto-efficiency-and-Competitive-Equilibrium-tp7603189p7603191.html

Pareto Optimal Allocations will be points on the line yA = xA/2.
Competitive Equilibrium prices are p(x) = 1 p(y) = 2,  (xA=2, yA = 1), (xB=2, yB = 2).
Now figure out the UPF by plotting Edgeworth Box.